Atul invests a sum of Rs. 5400 and Nirmal invests a sum of Rs. 10200 at the same rate of simple interest per annum. If, at the end of 5 years, Nirmal gets Rs. 480 more interest than Atul, then find the rate of interest per annum (in percentage).

Correct option is A

Given:
Atul’s Principal (P₁) = ₹5400
Nirmal’s Principal (P₂) = ₹10200
Time for both (t) = 5 years
Difference in simple interest = ₹480
Rate of interest = R% (same for both)
Formula Used:
​$$\text{Simple Interest (SI)} = \frac{P \times R \times T}{100}$$​​
Solution:
​$$\frac{10200 \times R \times 5}{100} - \frac{5400 \times R \times 5}{100} = 480\\\ \\\frac{5R}{100} \times (10200 - 5400) = 480\\\ \\\frac{5R}{100} \times 4800 = 480$$​​
5R × 48 = 480
240R = 480
R =$$\frac {480}{ 240}$$​= 2%